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The Primary Causes Of The Great Depression

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Meghan Stein Mr. Vigil U.S. History II (2) 3 March 2017 Great Depression Essay The only time that President Hoover had success and wealth during his presidency was at the very beginning. This is because during his term the Great Depression occurred, which was the worst economic depression that the United States has seen. The Great Depression began on October 29th, 1929, the same date as the largest stock market crash. The Great Depression changed the lives of United States citizens and was a major disaster because it lasted for an entire decade, which ended with the start of World War II. The unemployment rate was in the double digits, and ten years after the Great Depression started, one in five citizens was unable to find work. Many consequences …show more content…

The primary causes of the Great Depression can be blamed on the stock market Crash of 1929, decreased overall spending, the overuse of credit, drought in the Midwest, and foreign economic policy. After World War I, ended the United States’ economy and trade between Germany and Europe was at an all-time high. The 1920’s is viewed as a time of prosperity because of the great inventions and investments in the stock market. Incomes increased after World War I and investors were buying on margin, which is when an investor borrows money from a broker to purchase stocks. Because of this, the stock market’s value rapidly increased and investors were earning large return checks, which made the stock market bubble. In the beginning of 1928, the Dow Jones Industrial Average was at an all time high, 191. The same day that President Hoover was inaugurated the average jumped to another all-time high of 313 points. In early September, 1929, the Dow Jones Average was at another all time high, 381, but after this stock prices began to fall. Panic set in and “a record of 16.4 million shares were sold” (Cayton 741). Because of this, the …show more content…

During the Great Depression, citizens were suffering and hopeless because they were hungry and bankrupt. As a result of the Great Depression, citizens became unemployed and lost their bi-weekly wages. Also during the Depression, food lines, where citizens were forced to wait for bread and vegetables, were miles long, and no one was guaranteed any food. Some people during the Great Depression could no longer afford their homes and were forced to build temporary homes made out of tents and pieces of wood and metal in Hoovervilles. Families who had children were forced to stop educating their children and force the children to start working to earn money to help their families put a meal on their dinner tables. The average annual salary dropped 40 percent during the Great Depression. People also were suffering psychologically because they thought they were not worth anything since they were not working. The psychologically suffering did the most long lasting damage and some people failed to recover until well after the Depression

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